CSCI tests novel structure on bond return

China State Construction International Holdings returned to the dollar bond market, adopting an unusual structure that raised many questions even after the $500m credit-enhanced deal was priced.

The company is a repeat issuer in the offshore market, but its return on February 28 was unprecedented. Instead of issuing the notes through an offshore special purpose vehicle (SPV) while providing a guarantee, the Baa2/BBB/BBB+ rated CSCI decided to explore a new structure.